Which of these is a definition for general agency?

• A. The agent is responsible for all actions.
• B. The principal is responsible for the agent's actions.
• C. The client controls the agent's decisions.
• D. The broker is the sole party in charge.

Answer: (B)

In general agency, the principal is responsible for the agent's actions when the agent acts within the authority granted by the principal. Since the agent is acting on behalf of the principal in a broad range of tasks, the principal bears liability for those acts performed within the scope of that authority. The agent may be liable if they exceed their authority or engage in misconduct, but the overarching rule is that the principal shoulders responsibility for the agent’s actions within the authorized scope. The other statements don’t fit because they misstate who holds liability or who controls the relationship; a client isn’t described as controlling decisions in this precise sense, and the broker isn’t the sole party in charge.